Increased buyer activity and fear of low supply leads to monthly new home price rise
The average price of a new home rose 2.8% in February 2009, the first monthly increase since May 2008. Decreasing availability of stock and intense buyer interest at the start of the year are currently working to distort figures, leading to monthly fluctuations. While there are some signs of softening price falls for new homes, it is too soon to call the bottom of the market with further, albeit marginal price falls still expected over the coming months.
Commenting on the data, David Bexon, Managing Director of SmartNewHomes.com said:
“Many of the UK house price indices are now recording erratic fluctuations in their monthly data. One month’s worth of positive growth does not indicate an emergence from the downward price trend, however, renewed interest from homebuyers and investors at the start of 2009 has put the brakes on price reductions from many developers, and resulted in more positive pricing for new homes coming onto the market.
To read the latest New Homes Index click here.
Date Published: 01 March 2009
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